It’s Time to Discuss Flood Insurance

It’s rainy season, meaning there’s an increased risk for flooding. Since 1996, Oregon and Washington have had 18 federally declared flood disasters due to heavy rains, cresting rivers, backed-up storm drains and saturated ground. Hundreds of homes and businesses were threatened as storms dropped eight to 15 inches of rain within a few days.

Californians are also at risk, as recent wildfires have scorched the ground, which prevents rainwater from being absorbed. More than 1.3 million acres were damaged from wildfires, making neighborhoods near and down-slope from burn areas more susceptible to flooding and mudflow for up to five years as vegetation is replenished

Customers should turn to insurance agents for expertise about flood risk and how they can protect their homes. Agents have strong, trusting relationships with their clients, and know the types of products they want and the protection they need.

Only flood insurance offers financial protection from flooding. Homeowners insurance does not cover flood damage. Thus, it is time to remind customers that most people can purchase flood coverage, whether they live in a high-risk flood area or not.

By making sure clients have access to all their coverage options, agents can protect themselves and their agencies from costly lawsuits. If customers decline flood insurance, a signed flood insurance waiver form may reduce errors and omissions exposure if a client experiences a flood and claims the agent didn’t make them aware of their flood risk and coverage options. Agents should ask their Write Your Own company for the waiver (or declination) form, or visit www.Agents.FloodSmart.gov for a form.

Flood policies typically take 30 days to become active, so encourage customers to act now to protect them from future losses.

The National Flood Insurance Program’s (NFIP) FloodSmart Campaign provides resources to help agents explain the importance of flood insurance to clients. For instance, The Cost of Flooding tool shows how much flood damage can cost — from one to 18 inches of water. Flood Risk Scenario Animations illustrate the variety of flood scenarios that customers can experience, including snow melts, flash floods, and dam and levee failures. Both tools can be found at www.FloodSmart.gov, and are available for agents to post on their agency Web sites.

NFIP’s secure Web site www.Agents.FloodSmart.gov is designed for insurance agents to help them connect with consumers and FloodSmart resources. Registered agents have access to tools to maximize flood insurance sales. Some of the resources include:

Agent Co-Op Program – Advertising tools and templates agents can use to expand their flood portfolio, and offers up to 75 percent reimbursement for advertising costs.

Agent Referral Program – Allows agents to obtain free, qualified leads to grow their flood business. The program connects enrolled agents to consumers who want to speak to an agent about flood insurance. An enrolled agency is referenced on www.FloodSmart.gov and at the NFIP referral center, which answers calls from consumers who see FloodSmart ads on TV or in publications, and included in direct mail campaigns.

Mail-on-Demand – Provides agents with pre-built direct mail templates. Agents can select and modify direct mail templates to address various situations, such as seasonal flood risks, map changes in community, policy renewal reminders and more. Agents can use their own customer lists or purchase a list of potential customers. They also can choose to mail it to customers themselves, or let a professional mail house do the work.

Topics Agencies Flood